Nscale, an AI cloud provider backed by Nvidia, is reportedly considering a delay to its planned IPO until next year. The company, which was aiming for a valuation of $35 billion, filed for a New York Stock Exchange listing in September 2026 under the ticker NSCL. Goldman Sachs, J.P. Morgan, and Morgan Stanley are serving as underwriters for the offering.
Financial disclosures reveal that Nscale reported revenue of $140.6 million for the first half of 2026, representing a 1,252 percent increase, alongside a net loss of $1.02 billion. Its largest customer currently accounts for 52 percent of total revenue. Prior to the IPO, the company secured a $3.36 billion pre-IPO round led by Third Point and a $2 billion Series C round in March 2026, which valued the firm at $14.6 billion.
The potential delay follows Microsoft’s decision to decline an expansion of its capacity agreement with Nscale in Texas. Microsoft currently holds contracts with Nscale valued at up to $43.8 billion through December 2033. Additionally, Microsoft previously withdrew from an anchor deal at Nscale’s site in Loughton, Essex, due to power-connection delays.
Nscale continues to manage significant financial obligations, including a $3 billion debt package for data center construction in Texas and North Carolina, as well as $3.1 billion in convertible bonds, with $1 billion provided by Nvidia. Despite the Microsoft developments, Nscale maintains a total contracted value exceeding $103 billion and is currently negotiating with other potential customers for its remaining Texas capacity.
